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Will TechGuys work out for Dixons?

Launching a technical help service for consumers and small businesses is a
great idea.

I receive far too many calls from my (silver surfing) parents when they are
unable to access something on their computer, download a new program or connect
their digital camera to the TV. So, if nothing else, Dixon’s announcement this
week that it is launching its TechGuys service is going to cut my personal IT
advice time right down, and most probably do wonders for the relationship I have
with my parents.

But from a business perspective, taking into consideration Dixons’ parent
company DSG and its other subsidiaries, the move appears slightly more
confusing.

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Let’s park the fact that the name – TechGuys – reeks of the stereotypical
sexism that is still rampant in our industry and look at the fact that the
service, which DSG is ploughing £50m into, will target consumers and small
businesses with IT support, including a premium-rate phone line and
house/business site visits. DSG’s other subsidiary, PC World Business, provides
products and more importantly support services to the SME sector. The danger for
Dixons is how much crossover there is likely to be. Will DSG just cannibalise
its own market?

Dixons is not just faced with the task of keeping its subsidiaries from
operating against each other; it is involved in an ever-increasing battle
against competitors. With other electrical retailers, the might of Tesco and the
department stores, as well as the announcement last week that Marks and Spencer
is to dip its toe into the rough seas of technology, Dixons will have to ensure
that it offers a service above and beyond any of its competitors.

The firm said it will have 3,000 staff operating the phones in its TechGuys
call centres. Training and equipping that number of people with a high enough
level of IT knowledge to be able to offer a quality service will be both
time-consuming and costly. And consumers are fickle: if the service isn’t up to
scratch, DSG’s competitors will be waiting in the wings, claws at the ready.